UnitedHealth Group Inc. (NYSE:UNH) shares are climbing Thursday as analysts react to a strong third quarter report and a raised 2026 forecast, while Raymond James maintained its rating. Here’s what you should know.
- UnitedHealth Group stock is showing exceptional strength. Why is UNH stock up today?
Raymond James Trims UnitedHealth Price Target
Raymond James analyst John Ransom maintained an Outperform rating on UnitedHealth Group and cut the price target to $450 from $475.
Ransom blamed the lower target on valuation alone. The $450 figure applies a multiple of about 16 to 2028 earnings per share, a multiple that has shrunk as investors worry about the midterms and possible changes to risk adjustment and Stars.
Ransom called the third quarter a strong one. UnitedHealth earned $4.69 per share on an adjusted basis, 57 cents more than the Street’s $4.12 forecast. Raymond James had modeled $4.05. The quarter also got a lift of about 53 cents per share, or $610 million, from favorable reserve development tied to 2026 dates of service.
On costs, the medical loss ratio was 88.4%, lower than the 89.9% the Street expected and the 90.0% Raymond James modeled. Roughly 70 basis points of the 150-basis-point improvement came from prior period development.
UnitedHealth Raises 2026 Outlook
The company lifted its 2026 earnings per share guidance to a floor of $20.50. The prior range was $19.50 to $20.00.
Management suggested 2027 Street forecasts are too conservative. It called the bottom of its 13% to 16% long-term EPS growth range a fair starting point, which works out to about $23.17 to $23.78 in 2027 adjusted EPS. Before the report, the Street expected $22.60, while Raymond James projects $24.00.
Ransom noted that leaning on the low end signals caution about commercial pressure and planned reinvestment. Even so, Raymond James sees growth well above that level as margins recover in Medicare, Medicaid and Optum Health. UnitedHealth plans to share a fuller 2027 outlook at an investor event before the end of the year.
Other Analysts Update UnitedHealth Views
TD Cowen reiterated a Hold rating and held its price target at $402 on Thursday morning, according to Benzinga Pro. A day earlier, three other firms updated their views:
- Baird analyst Michael Ha stayed at Neutral and cut the target to $427.
- Piper Sandler kept an Overweight rating and raised its target slightly, to $504.
- Barclays analyst Andrew Mok kept an Overweight rating and trimmed the target to $440.
UNH Price Action: UnitedHealth shares were up 3.95% at $411.23 at the time of publication on Thursday, according to Benzinga Pro data.
Image: Poetra.RH/Shutterstock.com
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